That insult is very miniscule and you ought to know the saying "water off a duck's back". Are you seriously going to report everyone that swears in chat or whisper simply because they were frustrated? It's a waste of time to report anything like this.
There is profanity filter you have unchecked in game, that's your problem and you're seeing swear words because you allowed it.
It's a game, people play, people get happy or angry and call names/swear. It's just that they had a bad time and expressed themselves. There are people from all walks of life, you don't know what some go through daily in life just to play games and escape that harsh reality for a brief moment.
And with the amount of these chat reports, if you expect a ban-wave on the number of people swearing, there will be no one left to play.